Assocham: Kashmir should get Rs.10,000 crore for growth

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Last Updated: Thu, Jan 31, 2013 14:10 hrs

Jammu, Jan 31 (IANS) In view of Jammu and Kashmir attracting low levels of investment from the private sector in over two decades, industry body Assocham has suggested that the state be given a special package of Rs.10,000 crore for five years to boost its industrial growth.

The state attracted a meagre 0.3 percent of the total investments made across India by the private sector, according to a study conducted by the Associated Chamber of Commerce and Industry of India.

"Assocham has suggested that the central government provide an annual special package of Rs.10,000 crore to the state for five years to boost small and medium enterprises, food processing, horticulture, tourism and hospitality... and other potential industries," D.S. Rawat, general secretary of Assocham, said after releasing the study findings here Thursday.

The state attracted live investments worth just over Rs.one lakh crore out of the total live investments worth over Rs.140 lakh crore in India till December 2012, says the study 'Special Assistance for Development in J&K', prepared by Assocham's research bureau.

The government is the major source of investment in the state. Of the total investments made by the central government across states, 1.3 percent was invested in Jammu and Kashmir.

Constant flow of private investments and large industries is "imperative to bring about sustainable growth, development, jobs and the long-lasting peace in the state," Rawat added.

"Out of the total 7,109 live investment projects worth about Rs.58 lakh crore from all government sources across India, Jammu and Kashmir attracted 187 projects worth over Rs.one lakh crore.

"Of the total 9,950 live investment projects worth about Rs.83 lakh crore from private sector, the state attracted 28 projects worth just over Rs.27,600 crore," the study said.

"While the frontline states in India are competing to attract domestic and foreign investors, Jammu and Kashmir on the other hand could not attract any foreign investment," it added.

However, the state clocked an year-on-year growth rate of over 10 percent as the value of live investments increased from 212 projects worth about Rs.1.1 lakh crore as of December 2011 to 216 projects worth over Rs.1.3 lakh crore till December 2012, the study said.